The post Elon Musk Cancels $44 Billion Twitter Deal – Here’s What Went Wrong? appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide
Elon Musk announced that he was withdrawing his $44 billion bid to acquire Twitter, alleging a “material violation” of the contract due to the company’s failure to disclose sufficient details regarding the number of fictitious accounts. Elon Musk claimed that the data is essential to Twitter’s operations and financial health and is required to complete the deal.
Mike Ringler, Musk’s attorney, complained that his client had spent over two months looking for information to assess the incidence of “false or spam” accounts on the social media site. Twitter appears to have made false and deceptive assurances upon which Mr. Musk appeared to have relied on entering into the Merger Agreement, according to a letter submitted by Elon Musk’s attorneys to Twitter’s board.
Bret Taylor, the board chair for Twitter, stated in response that the board is committed to completing the transaction on the price and terms agreed upon with Musk and they plan to seek legal action to enforce the merger agreement. The board is confident they will win in the Delaware Court of Chancery.
Ever since the news of bogus accounts broke Tech stocks kept dropping steadily. As Mr. Musk made his all-cash offer to acquire Twitter at $54.20 per share publicly on April 14, on the other hand, the tech-heavy Nasdaq Composite Index has fallen 15%.
Hence as of Friday’s end, they were trading at $36.81 per share, and Twitter shares had decreased by almost 20%.